LTA to explore easing tight COE supply

[Notxer]

You guys know why they wanna cut down the number of cars on the road?

 

To make way for the 800 buses that SBS gonna bring in!!

 

JUS MY BIG WILD GUESS

[Poker]

He should keep a very thin mohawk hairstyle.

 

bro you very imaginative

[Poker]

You guys know why they wanna cut down the number of cars on the road?

 

To make way for the 800 buses that SBS gonna bring in!!

 

JUS MY BIG WILD GUESS

 

so have they started a recruitment drive for these 800 buses

[Wishcumstrue]

Personally I dun see the flaw. Taxis and private are cars that travel on Sinapore roads. It is reasonanle to be part of COE what.

 

If Private cars owner are allowed to do part-time their vehicle for commercial purpose, than I don't mind cab-coy bidding in Cat-A/B.

 

Else, COE is just another unfair practice that is so endemic in Singapore's transportation policy.

 

[Jolie888]

Boy, I think you got it all wrong.

Targetting negative (or zero) vehicular population growth p.a. does NOT mean no more new car sales!

It just means that the COE qouta released per year is lesser than the number of cars deregistered in a year.

Example:

If 10,000 cars are deregistered in the previous year, the LTA will release exactly 10,000 COEs the following year - to achieve 0% growth. So, 10,000 new cars will still be sold.

The car dealers will all remain in business - only selling less per year.

All car support businesses will also remain to continue providing services for both new and existing vehicles on the road!

 

Elaborate simulations can be done to model such (e.g. Monte Carlo simulation).

 

ERMM...

 

Based on wat u said then might as well close down all car dealership now lor, so in 10 yrs time there will be no private cars on the road lor.

 

 

Since all taking public transport, u may get a chance to take the same bus or train with ur favorite celebrity or prime minister lo.

 

Also occasions like weddings and funeral all chartered taxi and bus la.

 

Since no more passenger cars then petrol kiosk jus sell diesel will do lo, dun need to import petrol lo

 

Car insurance company and car accessories shops can also close down Liao la

 

Since all depend on public transport u think they won't raise the fare for all train, bus n taxi meh? Think by then ur boarding fare for taxi will start from $10 lor!!

 

In summary, in order to reduce jam (which only happen in peak hrs) many businesses have to close down and many pple will lose their jobs. Justifiable???

 

I may be wrong, but that's wat I'll speculate if wat u recommended is gonna be true. Cheers

 

[Simplecar]

Any policy changes must take into account those who got their COE with the knowledge that COE supply would decrease. Those who got their COE earlier should not suffer loss just because those who have yet to get their ride start complaining

 

The frequent tinkering of policies are causing lots of unhappiness and uncertainty. I urge LTA and HDB especially to think more broadly and not just listen to those who makes the most noise.

[Wishcumstrue]

The reason why no one is doing it because the gov n ADs will not be the main beneficials if the current system is overhauled.

 

+1

 

If COE is tweaked for fairer play, the biggest looser will be this con-man garment.

 

Geee...does this reminds me of wage-reform that they now resist.

 

2016 is awfully a long time to wait.

Edited May 5, 2012 by Wishcumstrue

[Gendut]

If Private cars owner are allowed to do part-time their vehicle for commercial purpose, than I don't mind cab-coy bidding in Cat-A/B.

 

Else, COE is just another unfair practice that is so endemic in Singapore's transportation policy.

 

One of the best suggestion so far. Excellent. Since road space is such a precious resource, why not allow any car to be a cab?

 

There are too many benefits to be mentioned here. Low cab fares. Abundant cabs. Etc...

 

But hey, wait a minute. The elites will lose out on the profits, no? So forget it. Stop dreaming. This is capitalism where profits come from......

[Passion]

Ah lui need to change car, that's why Coe coming down. If anyone knows prefix SFE and SFN belongs to which year, you can roughly know when ah lui car going to tai chia.

[13177]

Ah lui need to change car, that's why Coe coming down. If anyone knows prefix SFE and SFN belongs to which year, you can roughly know when ah lui car going to tai chia.

Ah liu is driving a SFE/SFN car? SFE is 2003 car plate and SFN should be somewhere 2005.

[Fastfive1]

Govt should make the financing difficult. Current low interest rates are encouraging people to take on crazy loans.

End up paying more than they can afford.

 

Should discourage such people from buying by increasing down payment to around 40% and only 5 yrs financing.

 

I fully agree with this. It is these people who are pushing prices up. The current COE system is a fair one. If one cannot afford a car then one should not attempt to own one. Unfortunately, there are quite a number of people in this forum who take on crazy loans and cannot see the big picture. These people will use the government as a scapegoat and blame the 60.1% of voters.

 

Another strange thing i've noticed is that people who can't even afford a car or have no intention of getting a car are the ones complaining about the crazy COE prices. How does it affect them? Not very much from what i gather. Their arguments are centered around not being able to afford a car, road congestion, how the roads are flooded with luxury cars and other immature reasoning. They are merely seeking attention.

 

The main reason to be concerned with the huge rise in COE prices is inflation. Almost everything is getting more expensive. There is a simple reason for this. Companies need vehicles to transport their goods around. Now assuming that a company paid 10k for a second hand van about 8-9 years ago with a 10 year COE and their van is almost at the end of its COE, this means that they would have to purchase another van (new or old) in order to continue the running of their business. Assuming a second hand van now costs 15k with COE til 2019 (despite having a very low COE value, it is still a cheaper alternative to a brand new van) and this company purchases it, they'll have to deal with a higher depreciation every year which will eat into their profits. Now in order for the company to sustain its profits, they will have no choice but to increase the price of the items they sell. In other words, the company will pass on the increase in the cost of production to consumers resulting in higher prices.

[Blowndiffuser]

The COE policy is basically trying to control congestion in a very imprecise way. Like taking a chainsaw to do heart surgery.

 

Most of the jams are caused by too many people using the same route at the same time and driving in an inconsiderate manner (cutting into other peoples lanes, hogging etc). I really feel that the govt should focus more on improving traffic flow by better-placed ERP gantries, well-designed roads & traffic light timings, etc.

 

Those people who don't often travel to congested areas should not be taxed as much as those who do. One way is to loosen the quota for COEs but raise ERP.

 

Taxi companies should be made to compete with Cat B or E. If one category is going to be penalized and fight with the bidding power of the cab companies it should not be the less wealthy Singaporeans.

 

The public transport system should be improved significantly. Any JC economics student will tell you that a privatized, profit-focused company with a monopoly will almost certainly provide lousy goods at high prices and not care about customer satisfaction. Perhaps the train and bus operators should be nationalized so that they will be forced to improve their service lest Singaporeans show their displeasure at the next GE. :angry:

 

 

[Fastfive1]

The COE policy is basically trying to control congestion in a very imprecise way. Like taking a chainsaw to do heart surgery.

 

Most of the jams are caused by too many people using the same route at the same time and driving in an inconsiderate manner (cutting into other peoples lanes, hogging etc). I really feel that the govt should focus more on improving traffic flow by better-placed ERP gantries, well-designed roads & traffic light timings, etc.

 

Those people who don't often travel to congested areas should not be taxed as much as those who do. One way is to loosen the quota for COEs but raise ERP.

 

Taxi companies should be made to compete with Cat B or E. If one category is going to be penalized and fight with the bidding power of the cab companies it should not be the less wealthy Singaporeans.

 

The public transport system should be improved significantly. Any JC economics student will tell you that a privatized, profit-focused company with a monopoly will almost certainly provide lousy goods at high prices and not care about customer satisfaction. Perhaps the train and bus operators should be nationalized so that they will be forced to improve their service lest Singaporeans show their displeasure at the next GE. :angry:

 

I don't think the COE's sole purpose is to control congestion. Rather its aim is to control car population which will indirectly control congestion. The ERP system is the one that is targeted at controlling congestion. Did you pass your A level economics? I know I did with a distinction. Lousy goods at high prices? You sure? Not necessarily true. This is probably the view you got from sitting at the coffee shop for too long. You might want to read your lecture book again.

Edited May 5, 2012 by Fastfive1

[Notxer]

Boy, I think you got it all wrong.

Targetting negative (or zero) vehicular population growth p.a. does NOT mean no more new car sales!

It just means that the COE qouta released per year is lesser than the number of cars deregistered in a year.

Example:

If 10,000 cars are deregistered in the previous year, the LTA will release exactly 10,000 COEs the following year - to achieve 0% growth. So, 10,000 new cars will still be sold.

The car dealers will all remain in business - only selling less per year.

All car support businesses will also remain to continue providing services for both new and existing vehicles on the road!

 

Elaborate simulations can be done to model such (e.g. Monte Carlo simulation).

 

My dear, before they hit 5% growth the COE already $90+k .. If 0% or even negative growth as u mentioned earlier.. I can't imagine wat would be the COE price.

 

U also mentioned "The car dealers will all remain in business - only selling less per year." i think this may only sound right on luxury brand cos pple who can afford them wouldn't mind a 'little' increase in COE cos they are prepared to spend. However, it would rather be ridiculous to apply on japanese cars when the COE paper cos more than the value of the car. u think they can sustain over time? Put urself in their shoes, how to operate their business like that? Ever try walking into any Japanese car dealership nowadays? Quiet like library leh. Mazda is a good example, now acquire by another dealership already lo.

 

Also, if all cars on the road are new cars(cos nt worth it to renew COE) all car supported businesses will decline also mah.

 

I reckon u got ur point there but jus a little extreme ... Cheers :)

Edited May 5, 2012 by Notxer

[Zyklon]

My dear, before they hit 5% growth the COE already $90+k .. If 0% or even negative growth as u mentioned earlier.. I can't imagine wat would be the COE price.

 

U also mentioned "The car dealers will all remain in business - only selling less per year." i think this may only sound right on luxury brand cos pple who can afford them wouldn't mind a 'little' increase in COE cos they are prepared to spend. However, it would rather be ridiculous to apply on japanese cars when the COE paper cos more than the value of the car. u think they can sustain over time? Put urself in their shoes, how to operate their business like that? Ever try walking into any Japanese car dealership nowadays? Quiet like library leh. Mazda is a good example, now acquire by another dealership already lo.

 

Also, if all cars on the road are new cars(cos nt worth it to renew COE) all car supported businesses will decline also mah.

 

I reckon u got ur point there but jus a little extreme ... Cheers :)

 

The reason why coe price is going up, up and away is because all singaporeans think that if the goverment apply a negative growth rate, coe supply will be greatly cut. WITH 0.5% OR EVEN -1% GROWTH, THE NUMBER OF COE QUOTA WILL ACTUALLY INCREASE IN THE COMING FEW YEAR. We will see a big big increase the next election(nothing to do with goverment though). This is because many of the cars on the road were registered in 2007-2009. When these owners start scrapping their cars at 8-10years mark for export, we will see 100,000 piece of COE per annum, even if growth rate is 0%. In comparison, even at +1.5% growth rate now, the coe quota is only a fraction of that.

 

This COE drought that we are seeing now is mostly attributed by owners of 2002-2004 registered cars having exported their cars during the cheap coe period a few years back. Unlike what many think, even with a 1% growth rate cut and the reduction for over-projection, the number of coe reduction per month is only 800 pieces(IIRC). Therefore, even if growth rate is cut to -1.5% come 2017, dealers will have BOOMING BUSINESS, simply because we still have 100,000-9000=91,000 pieces of coe per annum.

 

Pardon me for saying this, but coe is only a small part of the reason why mazda closed.

[SimonTan]

In a 0% growth scenario.

Once the Conti cars reach their yearly sakes limit, they cannot sell more or promise their manufacturer to sell more. As the COE is limiting the growth.

Most AD will become stagnant. Relying on a fixed sales figure yearly n servicing of existing cars.

 

Companies need to keep having positive profit right?

 

So they may start increase the selling price of cars. Also increase the maintenance n servicing costs.

Eventually cars will be so expensive to buy n maintain!

This will happen within the next five years!

 

COE is not going away soon. LIu is just telling us he is studying....how to defer the 0.5% target from the current 1.5% growth set point. He is not saying he is studying alternatives to COE or how to allow more buyers to buy cheaply.

[Passion]

Ah liu is driving a SFE/SFN car? SFE is 2003 car plate and SFN should be somewhere 2005.

The last time I saw him attending an event, he drove a Nissan Paire or something. It is a MPV with prefix SFE or SFG. SFN is our DPM, Mr Teo. Saw him on the road escorted by Seccom. He is driving a Volvo S40 I think. Not well verse with Volvo make.

[Brianlee_sg]

If taxi Coe has it own category, I will be very happy if Im taxi companies,

Think about it, How many players are there completing in this categories?